1. Company Presentation Tallin, February 28, 2008 Erik Pers Berglund

2. Waste to Energy The Paradox. The littering of man kind gives us the product to a better life on earth. Algae infestations in the Baltic

3. Waste to Energy By treating our wastes we do not only do good for the environment but also good business for the local- and global economy.

4. 4 Scandinavian Biogas in Brief  Gains made in recent years within biogas technology have led to great flexibility in the raw materials that can be used for the production of biogas. This, in turn, has led to a significant reduction in biogas production costs.  Scandinavian Biogas has consolidated Sweden’s expertise in the biogas sector and secured a global leadership position with methods that generate biogas more cost- efficiently than other means currently offered on the market. Additionally, the company has a unique gas cleansing technology for the production of liquefied biogas (LBG)  The company has achieved considerable attention on both regional and international levels and Scandinavian Biogas is now poised for rapid growth  The focus is on creating more effective methods for biogas yields in connection with the production of biodiesel and ethanol, as well as in connection to biowaste, e.g. sludge  Scandinavian Biogas technology is protected via existing patents and patents pending  Number of employees: 28  Company headquarters are located in Uppsala, Sweden  Projects in Sweden, Poland, South Korea, Brazil, Hungary and USA Introduction to Scandinavian Biogas

5. 5 Business Areas  Scandinavian Biogas offers: –Gas cleansing –Process optimization –Ultrasonic and mechanical upgrade –Functional delivery  Scandinavian Biogas offers: –Basic and detailed project planning –Equipment delivery –Functional delivery –Site supervision –Long service & maintenance contracts Sewage and WasteWaste LandfillEthanolBiodiesel Introduction to Scandinavian Biogas Cleansing of biogas from existing landfills Production of biogas via digestion of residual product (sludge) Production of biogas via digestion of residual product (glycerol) License-based SalesOwnership and Operations Codigestion of sludge and other organic materials (food waste, etc)

6. 6 Increased demand for renewable energy  Continued high price of oil increases demand for renewable energy –Over time, the demand for oil will outpace the supply, which will lead to oil prices remaining at a relatively high level –The price of oil has been trending upward nearly continuously since 2001  Global warming is producing political decisions that increase green energy demand –EU objective: 20% of total energy shall be green by 2020 –EU objective: 10% of total vehicle fuel consumption shall be green by 2020 –USA objective: President Bush intends to reduce vehicle fuel consumption by 20% by 2017 –California objective: 20% of total energy shall be green by 2010  Alternative biofuel types –Ethanol & Biodiesel are easy to distribute and enable 0-100% blending High costs and long lead times required to achieve sufficient capacity –Biogas (Methane gas) is the cleanest alternative and yields enormous capacity Minimal investment and low production costs  Option to introduce biogas into the natural gas network and then retrieve the same volume at another time and place in the network, results in significant synergies and economic benefits General Market Conditions

7. The Green Gas Principle Households Industry Vehicles Natural gas Biomethane The possibility to inject produced biogas into the natural gas grid, and then withdraw a similar volume at another point on the grid provides essential synergies and economic advantages. e.g. Southern California Gas Biogas = Natural Gas

8. 8 Biogas production – destruction to energy production  Sludge 1930  Industrial waste together with fertilizers 1990  Household waste 2000  Crops 2005  Residual production from ethanol and biodiesel 2007 Biogas Process Recent gains made in Sweden within biogas technology have enabled an industrial production of biogas, and achieved significant reductions in production costs

9. 9 Traditional biogas process – waste to energy  Sludge  Glycerol  Crops  Waste  Methanol  Cellulose P Pre-treatmentFuel Stage Fertilizer Stage Digestion Stage Substrate Stage P = patent P P P Biogas Process Source: Hushållningssällskapet, 2007 Steam

10. 10 World leading technology…  Ultrasonic treatment yields an increased degree of digestion resulting in higher biogas yield and enhanced dewatering  Optimization and management of over 20 additives (unique know-how) and trace minerals (à la Coca-Cola recipe)  The company’s technology permits reactors to be ”loaded” 2-3 times more as the competitor’s –Results in comparably lower investment costs –Results in lower operating costs –Enables significantly greater biogas production in existing facilities  Remote oversight of the digestion facility via Internet  Patented technology for liquefied biogas (LBG) through 50%-owned JV –Significantly lower transport costs –Lower investment cost in pumps and reduced energy consumption –Store separated carbon dioxide  Additional patents and patents pending –Re-circulation of degraded sludge via ultrasonic treatment –Higher breakdown of organic materials (10-20%), the result of process improvement –Reduced use of processing water (30-50%), the result of process improvement Biogas Process

11. 11 … delivers increased production … Scandinavian Biogas: Upgraded existing facility: >3,0 Nm 3/ m 3 New facility: >5,0 Nm 3 /m 3 Average production: Sweden: 1,0 Nm 3 /m 3 South Korea: 0,3 Nm 3 /m 3 Biogas Production in Sweden Multiple increase in production in the same facility Biogas Process

12. 12 …and higher energy yield Average Yield: Sweden: 45% South Korea: 30% Scandinavian Biogas: 1. Optimized Yield: 50–60% 2. Ultrasonic Treatment: 50–65% 1+2. Combined Solution: 65–80% Improved yield Biogas Process

13. Clean and Liquified Bio Gas Patented Liquified Bio Gas Upgrading process

14. CBG & LBG Clean Energy Upgrading process

15. TCR Total Contaminant Removal (SOXIA) TCR Separation of H 2 S & siloxanes 1. Fe2O3(s) + 3H2S(g) → Fe2S3(s)+ 3H2O(g) 2. Fe2S3(s) + 3/2O2(g) → Fe2O3(s)+ 3S (s) Upgrading process

16. GPP Gastreament Power Package GPP Separation of LCO 2 Upgrading process

17. 17 Offering to Wastewater Treatment Facilities  Responsibility for process-, mechanical and technical upgrade  Investment in gas cleansing equipment  Split incremental output or entire production  10-15 year contract  Increase acceptance of organic material > 3x  Increase production of biogas by > 5x  Assume responsibility for process & technology improvements  Invest in gas cleansing  Split the upside  Own customer with 10-15 year contract Offering to Wastewater Treatment Facilities

18. 18 Himmerfjärden, Sweden  10 years from start of operations Himmerfjärden, Sweden’s fourth largest wastewater treatment facility Offering to Wastewater Treatment Facilities Contract Duration Responsibility Start of Operations  Process- & technical improvements  Provide waste, degredation & crops to the biogas process  Increase biogas production from 3 to 15 million Nm 3 CH 4 /year in two stages  Invest in gas cleansing unit  Split the incremental gas production with the treatment facility  Production starts Q3, 2008  Negotiations completed on supplier contract

19. 19 Varberg Offering to Wastewater Treatment Facilities  15 years Contract Duration Responsibility Start of Operations  Process- & technical improvements  Contribute external materials  Invest in gas cleansing unit  Split gas production with facility  Transition cleaned gas into the main network  Negotiations underway with local energy company regarding delivery of gas Varberg, WWTP where we will inject the upgraded biogas into the gas grid

20. 20 Ulsan, South Korea Ulsan delegates visit Sweden, 26–29 February Offering to Wastewater Treatment Facilities  15 years Contract Duration Responsibility Start of Operations  2 digestion containers (7 500m 3 x 2)  Increase input of raw materials with >350% in existing infrastructure  Revenue streams –Paid for accepting raw materials –May keep 90% of gas  Improve process efficiency  Increase waste management capacity by 350%  Acceptance fee – waste  Gas sales  Production starts during Q3, 2008

21. 21  Pre-study regarding large-scale production of biogas Governor Schwarzenegger sets the toughest global emission standards. Scandinavian Biogas is to decide how to meet the target for the state of California! First two contract secured (California, USA) Order I Order II & III under negotiation 2008  Improved efficiency and gas cleansing at wastewater treatment facility, Escondido  Build biogas facility together with a biodiesel production facility Offering to Wastewater Treatment Facilities

22. 22 Offering to Waste Landfills  15-year contract  Invest in gas cleansing unit  Clean landfill gas to natural gas quality  Cryogen gas cleansing is the only technology that cleans ”bad” landfill gas  Landfill gases are burned in most cases and thus cannot be cleaned Offering to Waste Landfills

23. 23 Högbytorp, Sweden Offering to Waste Landfills  15 year contract has been set with suppliers and buyers of biogas Contract Duration Responsibility Start of Production  The company is building a gas cleansing facility for cleaning waste landfill gas, 8 million Nm3 per year  Scandinavian Biogas’ technology enables the cleansing of waste gas that would not be economically feasible using other technology  The company will receive 50% of revenues, ca. SEK 15 million per year  Investment of SEK 30 million  Production begins Q2, 2009

24. 24 Offering to Ethanol- & Biodiesel Production  Basic Engineering and/or Detailed Engineering  License  Mechanical Equipment (ultrasonic, gas cleansing)  Start-up Support  Technical Assistance  Service & Maintenance Contract Offering to Ethanol- & Biodiesel Production Facilities

25. 25 Gdansk, Poland Offering to Ethanol- & Biodiesel Production Facilities  15-year contract achieved with suppliers as well as purchasers of biogas Contract Duration Responsibility Start of Production  The company is building a complete gas facility for the digestion of stillage, 10 million Nm3 biogas per year  The company receives stillage from a distillery. There is no use for stillage as animal feed after it has been used for the increased production capacity  The company produces ca 10 million Nm3 biogas/year. Gas is sold without cleansing to Poland Energy, who produce electricity from it and sell 50% at fixed price and 50% tied to the price of oil  Production will begin Q3, 2008  Existing distillery  Expansion  Scandinavian Biogas solves the issue of waste byproduct  EU funding  Contract  Price levels

26. 26 Karlskoga, Sweden 1(2)  24 months Contract Duration Responsibility Start of Production  Scandinavian Biogas has initiated a project together with Kemab and Chematur to develop the first entirely green bioethanol production facility  Karlskoga Biofuels AB was established to realize this commercial opportunity with Scandinavian Biogas, Kemab, Chematur and the Peab Group as joint owners  In addition to having a 5% ownership, Scandinavian Biogas will provide ”detailed engineering”, licenses, mechanical equipment, etc. worth ca. SEK 300 million  Construction will start in 2008 and operations to begin 2009-2010 Karlskoga, a combined ethanol- and biogas production facility Offering to Ethanol- & Biodiesel Production Facilities

27. 27 Karlskoga, Sweden 2(2) Karlskoga – Project Biofuels Offering to Ethanol- & Biodiesel Production Facilities